Gammon Infrastructure Projects Ltd Hits The Capital Market With Its IPO

Gammon Infrastructure Projects (GIPL), hit the capital market with its initial public offering of 1,65,50,000 equity shares of face value Rs10 for a cash price through 100% book building process. The price band for the issue has been fixed between Rs167 and Rs200 per equity share. The issue opens on 10-03-2008 and will close on 13-03-2008. The issue consists of 1,48,95,000 equity shares to the public and 16,55,000 equity shares reserved for eligible employees. Out of the total issue, 60% of the net issue will be allocated on a proportionate basis to qualified institutional buyers and 5% of the QIB will be allocated to mutual funds and the remaining QIB portion will be allocated to the QIB bidders including mutual funds. AT leasr 10% of the net issue will be allocated on a proportionate basis to non-institutional bidders and 30% of the net issue will be allocated to retail investors on a proportionate basis. The company is an infrastructure project development company promoted by Gammon Group, is open for subscription with its initial public offering (IPO) of 1,65,50,000 equity shares of face value Rs 10 each for a cash price to be determined through a 100% book building process. The issue will close on March 13, 2008. The price band has been fixed between Rs 167 and Rs 200 per equity share.

For the investor, there are two modes of payment. As per payment method 1, the amount payable on submission of the bid-cum-application form (in case of retail individual bidders and non-institutional bidders) is Rs 50 per equity share . And the balance payable shall be paid by the due date. Non-resident bidders cannot make use of Payment Method-1. While under the Payment Method-II, amount payable on submission of the bid-cum-application form in the case of retail individual bidders and non-institutional bidders shall be 100% of the bid amount, and, in the case QIBs, will be 10% of the bid amount with the balance being payable on allocation.

Presently, GIPL's infrastructure project development business includes fourteen projects, of which four are already in the operations phase, seven are in the development phase and three are in the pre-development phase. GIPL also provides O&M and project advisory services for projects which are being undertaken by the project specific companies.